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Discussion Starter #1
I was looking into something for my mother, who has bank accounts at BMO and CIBC. Her BMO accounts have an overdraft feature where an automatic transfer will be made from savings to chequing in case of an overdraft situation. She thought this was a grandfathered feature no longer available, but it appears to be their current Overdraft Transfer Service ($5 per, plus transaction fee, but free for seniors).

I was trying to see if CIBC has a similar feature, but it apparently doesn't. Anyone out there know if I'm missing it, or how common this feature is at the Canadian banks? She wants to consolidate at CIBC, and doesn't need a loan-overdraft as such, but would like the "just-in-case" transfer from savings feature.

I checked TD, and they seem to just have the standard overdraft-loan type of thing. Interesting, in the US, their accounts have a Savings Overdraft Protection feature. Apparently they are making too much on overdraft charges to offer it to us up here.
 

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Probably isn't suitable for everyone but ING's new Thrive Chequing has this policy:

Nobody likes to do a non-sufficient funds transaction let alone have to pay unfair fees on top of it! $40 for bouncing a cheque or paying a bill just doesn't seem fair to us.

With THRiVE Chequing's Free 30 Day Whoops! Protection, we'll cover you up to $250 if you're a bit short. You won't pay a fee or interest on the overdrawn funds provided you pay it back within 30 days. We'll even let you know (by email) when you use Whoops! Protection. If you don't bring your balance to or above $0 within 30 days, you will be charged a $2.50 Whoops! late fee for every 30 days that the account balance is under $0.

This service is available for future dated bill payments and email money transfers, pre-authorized debits, and cheques.
 

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Discussion Starter #3
It is still a loan-overdraft - I'm sort of surprised they didn't set it up to allow automatic overdraft transfers from their savings accounts, since they are willing to do 30-day no-interest overdrafts. In any case, my mom is looking at consolidating at CIBC - she's not really an online type ...:)

The TD/TD USA thing made me curious, so I checked Royal. They seem to be doing the same sort of Yankee-favouring. RBC Canada has the normal interest-and-fee overdraft system, while RBC Bank USA also offers linking your savings account for overdraft transfers (for some of their chequing accounts, anyway). They even describe it as "a smart, debt-free way to transfer your own money to cover overdrafts"! A shame they aren't as smart on the Canadian side. Perhaps this is some sort of karmic payback for the "Only in Canada? Pity." Red Rose tea commercials... :)
 
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